Why It Matters

Congress faces mounting pressure to overhaul how it funds the federal government following the longest full shutdown in U.S. history. The October 2025 shutdown lasted 42 days after none of the 12 regular fiscal year 2026 appropriations bills had been enacted by October 1, 2025.

A Congressional Research Service (CRS) report examining the legal causes of government shutdowns, published August 19, underscores that lawmakers retain complete power to reshape shutdown rules, even as the Antideficiency Act remains the primary legal trigger for funding lapses.

The findings arrive as two companion bills circulate in Congress proposing automatic continuing resolutions to prevent future shutdowns, signaling a serious appetite for structural reform.

The Big Picture

The Antideficiency Act, codified primarily in Chapter 13 of Title 31 of the U.S. Code, prohibits federal agencies from incurring obligations before appropriations are made. When a fiscal year begins without enacted appropriations bills or a continuing resolution, fixed-period appropriations expire and agencies enter a lapse, triggering the general shutdown mandate. The act does not require all agency functions to end, however, giving the executive branch significant discretion in determining which operations are "excepted" during a lapse.

Section 1341 of Title 31 contains the core prohibition, while Section 1342 generally bars agencies from allowing employees to work voluntarily, except during emergencies involving the safety of human life or protection of property. Violations carry administrative discipline up to removal from office under Section 1349, and willful violations face criminal penalties of up to a $5,000 fine and two years imprisonment under Section 1350. The Department of Justice has apparently never brought a criminal prosecution under the statute.

Congress has multiple levers to prevent shutdowns. It may enact full-year regular appropriations before the fiscal year begins, pass a continuing resolution to bridge a gap, or provide targeted emergency legislation while broader negotiations continue.

It may also expand or restrict the Antideficiency Act's prohibitions, provide permanent-law appropriations that automatically activate during a lapse, or modify chamber rules to expedite appropriations consideration.

Two bills now pending in Congress propose automatic continuing resolutions at 94 percent of prior-year funding, declining one percent per 90-day period. S. 499 and H.R. 5405, both titled the Government Shutdown Prevention Act of 2025, would amend Title 31 U.S.C. to provide these automatic continuing resolutions.

The Bottom Line

The report makes clear that shutdowns stem from Congress's annual appropriations process, rather than from legal ambiguity about the Antideficiency Act. Congress wrote the rules that produce shutdowns and retains full authority to rewrite them.

Whether lawmakers adopt automatic continuing resolutions, expand permanent appropriations, or pursue other structural reforms remains an open question as the fiscal year 2026 deadline approaches on September 30.

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